Tencent is in advanced stages of talks to lead an investment round in Gurgaon-headquartered Pocket FM, the latest in the Chinese giants push to broaden its consumer internet portfolio in the Indian market.
According to three sources familiar with the matter, the Chinese firm is currently in discussions to lead a round of 20-25 millions in Pocket FM. Two people claimed that the proposed term would value the startup, which is three years old, at between $75 million and $100 million. Lightspeed and Times Internets Brand Capital, existing investors, are also part of the round.
The round is still open, and the terms could change. Tencent and Pocket FM declined comment.
Pocket FM offers audiobooks and podcasts in English as well as several Indian languages. The service claims that its library contains more than 10,000 hours. Audiobooks are produced by the startup in collaboration with several creators.
You can download the app free of charge. The app is available in a freemium model as well as a paid subscription.
These talks are occurring at a time when many Indian startups are launching in the audio category or expanding into it. Indian social network ShareChat launched an Indian Clubhouse-like feature earlier in the year.
Tencent's latest investment in India's consumer internet space will be Pocket FM. China's giant is also an investor in Gaana, a music streaming service that offers streaming audio and MX Player, a video streaming app that allows users to stream videos on demand.
Tencent has slowed down its investments in India since New Delhi amended a rule that required Chinese companies to get its approval before supporting Indian firms. In recent quarters, it has been more active and is now investing via debt rather than equity with a convertible loan.
